Coop Pank’s profit exceeded a million euros in January
12.02.2021
The rapidly growing business volumes of Estonian Coop Bank have reached a level where revenue increases faster than expenses. As a result, the bank earned a record profit in January, as can be seen in the overview of the bank’s financial results in January 2021.
The net profit earned by Coop Bank in January is 1.07 million euros, which is 89% more than a year ago.
Margus Rink, the bank’s CEO, said that the record profit earned in January confirms again that the rapidly growing business volumes of the bank have reached a level that allows it to grow its revenue considerably faster than expenses. “In January, we achieved record levels in all important performance indicators. The cost-benefit ratio of the bank was 54.4% and the return on equity was 12.8%. Although the economic outlook for this year is not clear yet, we’ll continue on the course of increasing our business volumes in 2021 as well,” said Rink.
The number of the bank’s clients increased by 2,300 in January and reached 89,000 by the end of the month. The customer base has increased by 35% over the year.
Rink added that the fast increase in the number of clients is the result of a successful strategy. “People increasingly appreciate that Coop, both as a bank and a retail chain, actually solves a problem that is important to Estonian people by bringing everyday banking services and groceries closer to people’s homes. Bigger discounts on groceries in Coop stores are currently one of the most important reasons for becoming a client of the bank.”
The increase in the number of clients also ensured the continuing inflow of domestic deposits in January: the deposits of local corporate and private clients grew by 17 million euros in total and the bank has increased the volume of deposits by 55% over the year. The volume of deposits in Coop Pank amounted to 773 million euros at the end of the month.
The bank’s loan portfolio grew somewhat more modestly than usual in January: the loan portfolio that increased by 7 million euros reached 677 million euros at the end of the month. The bank’s loan portfolio has grown by a remarkable 42% over the year.
The cost of loan write-downs in January was 0.2 million euros, which is 21% less than the year before. The net income of the bank increased by 28% and operating expenses by 8% over the year.
The detailed quarterly reports of Coop Pank can be found at https://www.cooppank.ee/en/reporting.